CREDAI Threatens Strike Over RR Rates
Times Of India [ 05-01-2014 ]

The Confederation of Real Estate Developers’ Association of India (CREDAI) on Friday urged the state government to roll back the increase in the ready reckoner (RR) rates and warned of going on strike if it did not revise the RR rates immediately.

A CREDAI delegation will meet the chief minister Prithviraj Chavan on Saturday during his visit to Nashik and will submit a memorandum seeking rollback in the RR rates. The association has also decided to meet the state revenue minister on Wednesday on the issue.

Speaking at a press conference, Kiran Chavan, president of CREDAI, Nashik, said: “The state has hiked plot rates up to 40%. Besides, additional 40% valuation is to be added for uploading TDR (transfer of development rights). It means a plot, which cost Rs 10,000 per sq m earlier, would cost up to Rs 18,000 per sq m.”

The real estate sector is facing recession for the past two years and the business has been badly affected, Chavan said. At this juncture, it was expected from the government to boost the real estate sector, but it has tried to hamper the growth of the sector by substantial increase in RR rates.

Chavan added, “The deals in plots and properties have already stopped due to recession and the increase in ready reckoner rates will completely stop transactions or procurement and sale of properties and plots. This will also affect the revenue of the government. Hence, we demand immediate roll back of the present hike in rates. We have decided to go on strike if the government did not roll back rates.”

As per the revised RR rates effective from January 1, the increase in land or plot rates have been in the range of 10% to 48.93%, while the rates of residential properties like flats and row houses have been increased by 18.04-34.36%. The increase in the rates for commercial properties like shops and offices has been in the range of 1.62% to 30.5%.

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